| 1.Why do ethics matter in entrepreneurship? Ethics matters in entrepreneurship because it is a reputation that is carried a long way and opens doors for new opportunities with other companies. It is a way to build a confident trustworthy business that customers trust and believe in. Entrepreneurship is a responsibility on decision making and thinking about not just themselves but others such as employees, community, or other businesses. Business starts up and embrace ethics in mission statements and reflects honest standards. |
| 2. How does my own personal budget related to an entrepreneurship budget? How are they different? My own personal budget relates because I know what my mortgage, light, water, and cable bill cost are and make that my main priority. Once my living expenses are paid and accounted for, I also consider car insurance, and other minor bills that have due dates. I must calculate the expected income for the month in order to be able to have extra money for clothes, food, gas, and all other fun expenses I plan so that I don’t spend more than what I earn. They are different because I’m not paying employees for working shifts in my business or paying vendors/investors a portion of my money based on contracts and agreements. An entrepreneurship budget is based on cash flow and financial statements in order to track revenue to grow. 3. Why do businesses need a budget or financial forecast? Businesses need a budget, so they can plan and make sure their plan is feasible. This is one of the most important things to have in a business because without tracking profit and changes of incomes the budget can be in the negative and cause stress on the owner or even employees if they are not paid. The cash flow statement is a great example because it keeps track of the in and out revenue of a business. |
| 4. What is your definition of social entrepreneurship? Give an example of an enterprise you read about from the Schwab Foundation website (Module page ” Social Entrepreneurship vs. Business Entrepreneurship-2). My definition for social entrepreneurship is a way to involve society and the community without thinking of income for the greater good improvement. An example of an enterprise from Schwab Foundation website is Roya Baghai, a founder video for change. She created the idea to have youth create 1 minute video on 21 century skills with their voice to address social issues. It allows youth to engage and feel heard but speaking up for others a to others which attract attention to humanities challenges in the world today. It is nationwide and all around the world youth can speak from their insight and be engaged with their community to bring awareness. 5. What are the most significant legal issues entrepreneurs face? The most significant legal issues entrepreneurs face is legal form. The legal form is the business and is attached to every moving part that makes the business successful or unsuccessful due to budget planning to tax planning for growth of the business. There are several legal forms that have different coverages for specific purposes. Sole proprietorship the company survival is only on owner. Partnership disadvantage is a risk if a death which will dissolve the form and if sued individually it affects the whole business. The c corporation handles most of the liability, but the ownership can be deferred. The S corporation or llc the owner pays less taxes, but its profit must still pay taxes even if not distributed and enough cash must be generated. |